Can Robinhood Stock Surge 2x?

Robinhood Markets (NASDAQ:HOOD) stock has had a remarkable run in 2025, with the stock rising almost 3x over the year. Growth has been driven by earnings momentum, a fast-expanding user base, and exposure to a hot cryptocurrency market.

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So could Robinhood’s stock, now trading at about $120, surge again to over $225 in the next few years? This is not far-fetched –  the stock was trading at just $34 per share in April 2025, just about 9 months ago.

Sure, at roughly 57x estimated 2025 earnings, you may be thinking that valuations are stretched. But when combined with rising profitability and expanding market opportunities, there’s a plausible path to a $230-plus stock price in the near future.

In the sections below, we break down Robinhood’s revenues, margins, and valuation multiples to map out how this scenario could unfold.

1. Robinhood’s Revenue Growth Potential

• HOOD’s revenues have risen considerably from $280 million in 2019 to about $2.9 billion in 2024, translating into an annual growth of almost 60%.
• Revenues have grown 75% from $2.4 Bil to $4.2 billion, in the last 12 months

It looks like the momentum can hold up.

Consensus projects close to 53% revenue growth for 2025 to about $4.5 billion, although growth is projected to slow to about 22% for 2026.

However, there is a real opportunity for HOOD to maintain this average annual rate of close to 35% for the next few years, led by continued customer growth for the company, significant potential in the crypto business, and wealth management solutions.

Considering this, revenues could move from an estimated $4.5 billion in FY’25 to around $8.2 billion by FY’27, or an over 82% increase.

Here’s a closer look at what could drive this growth.

Monetizing Larger Customer Base: Robinhood continues to add users and assets at scale. Funded accounts rose 10% YoY to 26.8 million, while platform assets jumped 119% to $333 billion. A larger asset base directly drives higher trading activity, interest income on cash, and future advisory and wealth fees.

Crypto Upside: Crypto has re-accelerated as a major growth driver for Robinhood, with revenue up 98% YoY to $160 million in the last quarter. While the market has cooled a bit recently, we believe that HOOD still has long-term upside from the space. The Bitstamp acquisition expands Robinhood’s global regulatory footprint and strengthens its crypto infrastructure. A friendlier regulatory climate and growing political support, including from the Trump administration, could help the asset class.

Wealth Management:  Robinhood owns a young, millennial-heavy user base, and there is a massive wealth transfer expected to move from older generations to millennials and Gen Z over the next two decades, running into tens of trillions of dollars. By acquiring these users early, Robinhood positions itself to benefit as their assets and investment needs rise over time. By adding retirement, cash, and wealth tools, the company aims to grow with users as their assets and financial complexity increase.

New Frontiers: Robinhood is successfully scaling new products beyond trading. Its prediction markets business has gained rapid traction, with billions of contracts traded and over $100 million in annualized revenue, underscoring the platform’s ability to quickly monetize emerging opportunities.

2. Margins Have Scope To Expand

Combine this robust revenue growth with the fact that HOOD’s adjusted net margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) are on an improving trajectory. They grew from negative levels in FY’21 to about 35% in FY’24.

Robinhood’s model has considerable operational leverage, since costs do not necessarily rise with revenues. Much of its cost base—including tech infrastructure, compliance, and support—is largely fixed or scales modestly with user growth. So, each additional dollar of revenue could add disproportionately more to profits.

Margins could potentially trend still higher to levels of about 40%, considering these trends. Now, combining 40% adjusted net margins with about $8.2 billion in revenue, we’re talking about earnings of about $3.3 billion. That’s a roughly 3x increase from levels seen in 2024.

3. Lower P/E Contraction, Stronger Earnings Take Stock Higher

Now, if earnings grow 3x, the price-to-earnings multiple will shrink by 3x, from levels of about 21x, assuming the stock price stays the same. But that’s precisely what HOOD investors are betting will not happen.

If earnings expand 3x over the next few years, instead of the P/E shrinking from a figure around 54x now to about 18x, a scenario where the PE metric stays at about 35x looks more likely, as strong growth and improving margins give investors more confidence about HOOD stock’s future.

This would make the growth of HOOD stock to levels of over $225 within the next few years a real possibility.

So what about the time horizon for this high-return scenario?

Our example above illustrates a roughly two-year time frame; in practice, it won’t make much difference whether it takes two years or three. As long as HOOD is on this revenue expansion trajectory, with margins holding up, the stock price could respond similarly.

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